Singapore’s HTL Group Italian subsidiary faces worker strike over exploitative labour practices

ITALY: Earlier this month, a strike began in Forlì, where workers at the Gruppo 8 factory protested against exploitative labour practices.

Gruppo 8, a newly launched Italian enterprise invested in by HTL Group—a global leader in sofa production and an international fashion home brand based in Singapore—has been accused of subjecting its workers to semi-slavery conditions for months.

The protest involved workers from the company’s plants on Via Gramadora 4 and Via Meucci 14b in Forlì.

At the latter site, the demonstration took place both outside the factory and inside a dormitory set up by the company, supported by the grassroots union Sudd Cobas.

However, as reported by Italian media, Gruppo 8 denied the exploitation claims made by 17 Pakistani workers, clarified that it is unrelated to and unaware of the alleged issues at one of its subcontractors, and rejected any involvement in the exploitation of workers.

Workers Protest Gruelling Hours, Low Wages, and Hazardous Living Conditions at Gruppo 8 Factory

Workers demanded fairer treatment, citing gruelling 12-hour shifts for six or seven days a week, with wages below €5 ($5.25) an hour.

Additionally, some workers were forced to live in an unheated dormitory within the factory, which doubled as a warehouse and lacked adequate sanitation, exposing them to hazardous conditions.

Although the workers were formally employed by a Chinese-run company, they effectively worked for Gruppo 8.

The union demanded that Gruppo 8 take responsibility for these conditions, provide stable contracts, and ensure dignified living arrangements.

Workers Triumph in Fight for Fair Contracts and Improved Living Conditions

After days of protest, it was revealed that the workers had won their battle against the unfair practices.

All employees will now receive stable contracts guaranteeing an eight-hour workday, five days a week.

Additionally, the company has agreed to provide housing for 30 days, paid for by Gruppo 8.

“We are very happy,” workers said, celebrating their hard-fought victory.

Queries have been sent to the company regarding the situation, but no response has been received.

HTL Group Expands Global Presence with New Investments and Nasdaq Listing

A check of Gruppo 8’s LinkedIn profile reveals that the company is a newly launched enterprise in Italy, with investment from HTL Group.

According to the profile introduction, HTL Group, founded in Singapore in 1976, initially focused on furniture OEM production.

In 1994, it shifted its main production line to mainland China. Today, the group operates 11 integrated manufacturing facilities globally, employing over 6,000 people worldwide.

An article in The Straits Times reported that HomesToLife, HTL International’s flagship retail brand, is funding this next phase of expansion into markets like Indonesia, South Korea, and Malaysia.

HomesToLife Singapore was listed on Nasdaq in October, raising US$5 million (S$6.71 million) through the listing.

Gruppo 8 Denies Involvement in Protest, Clarifies Distinction from Subcontractor Sofalegnami

As reported by Italian media, Gruppo 8, through its lawyer Massimiliano Pompignoli, stated that the company is completely unrelated to the ongoing protest pickets outside its gates since 7 December.

“In fact, the workers occupied the Sofalegnami plant on Via Meucci,” continues Pompignoli. “Meanwhile, at Via Gramadora, the gates are occupied—one with a tent and the other with some machinery, which is effectively disrupting the group’s business activities.”

The lawyer clarifies that “the company is unaware of what happens at Sofalegnami, which is a subcontractor of the group and the contractor for the work. ”

“However, it (Gruppo 8) has nothing to do with managing the employees, and what is happening is causing significant daily damages to the company, which is considering every possible legal action to protect its economic and business interests, as well as its image.”

Additionally, the company rejects the accusations from the unions, emphasizing that no Gruppo 8 employees are participating in the strike, as there is a clear distinction between the company and Sofalegnami.

Broader issues of exploitation in Italian factories

The exploitation uncovered at Gruppo 8 mirrors systemic issues across Italy’s manufacturing sector, particularly involving migrant workers producing high-end goods.

An investigative documentary by Al Jazeera’s 101 East recently revealed similarly abusive practices in the Italian luxury goods industry.

One worker, Abbas, who migrated from Pakistan to Italy in 2015, described his harrowing experience working in a factory producing luxury leather bags.

“For two years, I was always working without sitting down. On my feet at work for 14 hours, with only one 40-minute break each day,” Abbas said.

He earned less than $3 an hour for six days of work a week.

He eventually joined Sudd Cobas, which helped him secure a fair contract, increasing his pay to $10 an hour.

Despite his progress, he noted, “There are many workers who still work 12 hours a day, 14 hours a day, seven days a week.”

In their investigation, 101 East visited a leather factory producing goods for luxury brands, operated by a Chinese owner, Sofia.

Posing as Chinese investors, the journalists uncovered alarming practices.

Sofia revealed that workers were officially contracted for only four hours a day but worked far longer under informal agreements to avoid higher insurance costs.

She admitted that she avoids hiring local Italian workers, stating, “Chinese workers can work 12 hours or 11 hours. They are also more obedient. Italians are lazier.”

Inside the factory, the journalists observed poor conditions, with workers operating machinery without protective equipment.

Labour rights activists argue that luxury brands share the blame for these violations.

Deborah Luchetti, spokesperson for the Clean Clothes Campaign, said, “They [brands] determine the price under which suppliers work. These conditions are so destructive and so unfair that they force suppliers to resort to subcontractors.”

This practice leads to smaller factories taking extreme measures to meet production demands at the lowest possible cost.

A call for change

The Sudd Cobas union has been at the forefront of fighting against illegal labour practices across various industries in Italy, from textiles to furniture.

Co-founder Luca Toscano highlighted the rising abuse in Italy’s high-end manufacturing sector.

“They need the false image that ‘Made in Italy’ gives to the product. So they don’t move production to Asian countries but instead bring the working conditions of China, Pakistan, and Bangladesh to Italy, exploiting migrant workers.”

The strike at Gruppo 8 and the revelations from 101 East underline a growing issue of exploitation in Italy.

Activists are urging immediate action to address these systemic abuses and ensure compliance with Italy’s labour laws.